The State Legislature has not reached agreement on the 2015-17 Biennial Budget.
However, on June 30, 2015, the North Carolina General Assembly ratified, and Governor McCrory
signed, Senate Bill 534 authorizing continuing budget authority for state government operations.

All campuses are being asked to review their vacant SPA and EPA non-faculty vacant positions
and to make a systematic effort to abolish positions which have been vacant for 12 months or greater
and for which there is no intention to actively recruit within the next 6 months.

The Board of Governors has taken final action on the 2014-15 budget and on EPA salary guidelines.
The recurring budget reduction will be met with allocations from the University, Provost, and
Finance and Business.

The existing State Spending Guidelines
will remain in effect until we have a clearer picture of our FY 14-15 budget. Vacant positions that are not
essential to your operations should not be filled until the impact of the 2014-15 state budget is finalized.

Effective immediately, please comply with the salary and spending instructions for state
appropriated funds as set forth in the UNC-GA memorandum below. No transfers of expenditures to
state appropriated funds from other funding sources may be processed without the specific approval of
Vice Chancellor Leffler. Detailed spending guidelines have been added below and are featured in
the green box on the left side.

We have created an online form for individuals to submit
suggestions and ideas by Friday, December 13 for review by the Strategic Resource Management working group.
The most promising opportunities will be investigated to determine their suitability for implementation at
NC State; we anticipate sharing a list of recommendations with Chancellor Woodson in the spring for further
discussion and review.

The federal government shutdown will have some impacts on NC State, which will increase if it continues for a
significant period. Under no circumstances should state funds be used to cover federal employee costs unless there
is clear documentation that federal funds will reimburse the state when the shutdown is over.

UNC-General Administration has provided the University with a budget reduction template. (Those responsible for
completing the template have already received the following documents via email.) The template and a narrative description of each
unit's budget reduction plan must be received by the University Budget Office no later than noon on Friday, September 13th.

We recommend you proceed with finalizing your budget reduction plan. A template and related instructions
for the submission of your budget reduction plan will be sent to you by the University Budget Office once we
receive UNC-GA's instructions. (This memo includes the final budget reduction allocation schedule.)

Given the recent tuition changes and the shifting of course taking patterns in DE and on-campus courses,
we have decided that the separation of DE from other Academic Affairs budgets is no longer necessary.

On July 3, OSP issued a revised memorandum superseding the initial June 28 memorandum. As a result, UNC-GA issued a
revision to its memorandum. As stated in both revised communications, salaries are frozen and the only allowable salary
increases are to be for promotions (moving to another position).

"Given the reductions being considered by the General Assembly, we believe you should concentrate your
reduction planning on a 5% recurring amount with the expectation that there could also be an additional
one-time budget reduction allocation."

"The General Assembly has begun its review of the Governor's 2013-15 budget bill, and while it might not adopt the entire
budget recommendation, it is safe to assume that the final bill will include a reduction. As a result, we need to begin
planning for a budget reduction of some amount."

Salary adjustment restrictions, as defined in the UNC memorandum, apply to positions funded in whole or part
by state funds. Travel expenditures on state funds must comply with the UNC guidelines and purchases of services
and supplies should be carefully reviewed. No transfers of expenditures to state funds from other funding
sources may be processed without the specific approval of Vice Chancellor Leffler.

"We are allocating to each college and division (2-digit OUC) an amount of recurring state-appropriated funds equal to
one percent of the division's or college's SPA salaries paid on state-appropriated Academic Affairs (16030) budget code as
of June 30, 2012."

"This task force is appointed to steer the development of a cost analysis, assess various budget processes used in higher
education today, recommend how the university's budget might be more appropriately realigned, and suggest how any future new
budget resources might be allocated."

The UNC Board of Governors authorized and NC State will centrally process a 1.2% increase for permanent EPA employees
as an across-the-board increase. The Board of Governors further authorized an additional 1.8% of total EPA salaries that will
require actions by the colleges and divisions.

This is the narrative document that NC State University has submitted to UNC-General Administration. It describes the following:
1. The process used to arrive at the reductions submitted. (Who was involved, when did planning begin,
when were reductions implemented, and how were faculty/staff/employees/others notified.)
2. How the reductions follow the requirements of the budget bill.
3. The specific impacts of the reductions.